Multiple Choice
A change in which of the following will NOT shift the demand curve for ice cream?
3. Supply and Demand
Supply and Demand Together: One-sided Shifts
Struggling with Macroeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The discovery of a new fertilizer will shift the ___________ curve for carrots, leading to a ___________ equilibrium price.
A
demand, higher
B
demand, lower
C
supply, higher
D
supply, lower
Verified step by step guidance1
Identify the type of curve affected by the discovery of a new fertilizer. In this case, the supply curve is affected because the fertilizer increases the productivity of carrot production.
Understand that an increase in supply means that producers can supply more carrots at every price level, shifting the supply curve to the right.
Recall the basic principle of supply and demand: when the supply of a good increases, and demand remains constant, the equilibrium price tends to decrease.
Visualize the supply and demand graph: the original supply curve shifts to the right, leading to a new intersection point with the demand curve at a lower price level.
Conclude that the discovery of a new fertilizer shifts the supply curve for carrots, resulting in a lower equilibrium price, assuming demand remains unchanged.
Related Videos
Related Practice
Supply and Demand Together: One-sided Shifts practice set
Problem sets built by lead tutorsExpert video explanations